Coffee Futures Closed Slightly Higher
Arabica futures settled modestly higher Wednesday. The most active contract for July delivery closed 90 points higher at 197.55 cents a pound. The activity was dominated by switches as volatility attracted good speculative participation. Volume reached 43,812 lots including 10,211 switches. The July/Sept switch ended at 1.35 after trading in a 1.15 /1.40 range. The market is developing a base near these levels. Short profit taking and the proximity to an important area of support that make less attractive speculative selling have been noted during the last two sessions. Open interest decreased 3,806 lots as of yesterday reflecting the profit-taking. A recovery of both Robusta and the cocoa market added some support to the coffee futures today. Fundamentally, the market will remain focused on the harvesting of Brazil’s crop and the weather in Vietnam. Also, according with reports adverse weather in Indonesia could impacts yields. In the coming weeks, the USDA will continue to publish their attaché coffee reports, which will be the first forecasts for the 2024-2025 crop. Commodities were mostly lower today. Brazil’s Central Bank will announce their interest rate decision later in the day. In March, the central bank of Brazil reduced its key Selic rate by 50 bps to 10.75%. Expectation is that another reduction of a quarter-point will be announced.
Brent Crude Oil fell 0.63% to 82.64 and Spot Gold Futures also ticked 0.10% lower to 2,311.84. Cert stocks declined 13,750 bags to 687,673 bags. Pending grading added 1,085 bags to 119,937 bags.
Robusta Jul24 contract settled at $3,414 with a 3449/3330 range. With the speculative long liquidation taking a breather the market was able to find some sort of equilibrium. Roster buying was noted in light volumes, with them already putting on a fair amount of cover over the recent sessions not as much interest was shown today. Origin selling was noted by a total absence. Volumes were half that of yesterday with only 10k lots trading on the JUL24 contract. Structure remained inline with a 70/80 range on 3.4k lots. Robusta Sep24 3725/3025 fence (to the call) traded 1500x @ 0, Robusta Sep24 3700 calls vs 3305Δ30 traded 500x @ 1287.
At the time of writing
USDBRL 5.0910 +0.01%
USDCOP 3888.2 -0.16%
Miami London Brazil
305-925-4847 +44-203-580-6099 +55-11-3509-5426
ICE Arabica
Volume:
43,812
ICE Robusta
Volume:
19,157
Brazil Arabica
Volume:
507
Arabica-Brazil Arbitrage
Arabica-Robusta Arbitrage
Arabica Switches
Robusta Switches
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